Report: Health care jobs flatten in Michigan, still top wage producer

Direct health care jobs in Michigan grew to 602,000 in 2017, approximately the same as in 2016

Total health care jobs contribute $62 billion in wages and benefits to the state's economy

Hospitals employ more 240,000 workers, 10,000 less than 2016

The health care industry in Michigan employed more than 602,000 people in 2017, generating more than $38 billion in wages, salaries and benefits and making it the largest private-sector employer in the state, according to the 2019 report from the Partnership for Michigan's Health.

Hospitals alone employed more than 230,000 individuals in 2017, approximately 12,000 more than in 2015, but slightly lower than the 240,000 people employed by hospitals in 2016, according to an analysis by Crain's of the past two partnership reports.

In 2017, hundreds of employees were laid off at hospitals, including those at Ascension Health Michigan and Detroit Medical Center, that accounted for a 10,000-worker decline in the partnership survey. The layoffs were partially due to the continued movement from inpatient care to outpatient care and a need to reduce expenses. Hospital officials say employment rebounded in 2018. Overall, last year's report found similar statistics.

But when adding about 489,000 people employed in indirect health care jobs — those companies and employees that support the health care industry — the state's overall health care sector in 2017 contributed about $62 billion in overall economic benefits to the state. A total of 1.1 million workers in the health care sector contributed nearly $18 billion in 2017 to state, local and federal taxes.

The Partnership for Michigan's Health consists of the Michigan Health & Hospital Association, the Michigan State Medical Society and the Michigan Osteopathic Association.

"Michigan's hospitals and health systems work daily to protect residents' health and well-being and, in the process, provide nearly 40 percent of health care's economic activity in Michigan. Hospitals and health systems support both physical and financial wellness," said Brian Peters, CEO of the Michigan Health & Hospital Association, in a statement.

Julie Novak, CEO of the Michigan State Medical Society, said physicians are job creators in both inpatient or outpatient settings.

"Michigan physicians pride themselves on providing outstanding quality care to their patients and, clearly, that aim provides stability and an opportunity for growth," Novak said in a statement.

Kris Nicholoff, executive director of the Michigan Osteopathic Association, said the report is a good resource to help judge the health care industry's contribution to the Michigan economy.

Clicking on the interactive tool on the partnership's website can show the economic impact based on county, region or congressional district. The data comes from the American Hospital Association, The report uses data from the American Hospital Association, the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics and the U.S. Census Bureau.